He warned in 2002 that Fannie and Freddie didn't have the cash to weather a storm, and he's pessimistic about their future. "They can limp along because they are now explicitly backed
by the government, but they should be wound down," he says.

He also believes the Fed's strategy of maintaining low interest rates to keep the economy humming will backfire: "To avoid a mild recession now, we're risking a much deeper recession
later."